There will always be debate about the extent to which Artificial Intelligence (AI) is hype or reality. In fact, through commonly used apps on our phones - such as the Maps people use to assist their car journey - AI is already part and parcel of our daily lives. The big question, as ever, is whether this will be positive or negative for society. The answer will inevitably be both - with huge pluses and minuses.
That said, whilst I believe we must embrace the AI revolution across society, not least if we are to maximise the upside, I am personally concerned at the growing anecdotal evidence of negative jobs impact. I’ve written many times in recent columns about the deteriorating jobs’ picture: this is both statistical, with unemployment rising every month since the general election; and based on local feedback, with job seekers reporting fewer vacancies. But it would be a profound worry if AI compounded this for the worse.
To be clear, I’m not a ‘luddite’. As any search on (an AI powered) search engine will confirm, the Luddites were a 19th century anti-mechanisation movement who destroyed machines in the hope it would protect their jobs. Of course, since then we’ve had vast expansions in employment, as each era of mass technological innovation leads to a more prosperous society, still creating plentiful job opportunities - but in an ever more dynamic fashion.
I don’t doubt that AI will ultimately be the same. Nevertheless, it must be clear that this genuine disruptor technology could cause a lot of pain along the way, if jobs many have built their careers around - not to mention their financial commitments - disappear rapidly, before the wider positive effects lift growth in a compensating fashion. Surely, the point is - we cannot stop the march of technology, so let’s focus every effort on minimising the steps that could be harmful to growth, and which we do control.
As such, the last thing the Government should be doing is pursuing an anti-business agenda – but that is precisely what any entrepreneur would tell you is happening at the coal face of the economy. I ran a small business before entering Parliament so there’s no point pretending that dealing with the red tape of employing people was easy.
Nobody wants to live in an age where the workforce is exploited en masse, but most employers want to create jobs, and do the right thing. What we need is a flexible labour market, where employment law is applied fairly, and doesn’t disincentive job creation. Yes, running a business was stressful, but I for one also found great joy in doing positive things - like creating jobs, and minimising red tape makes such activity more likely, underpinning investment decisions.
So, as we hear of AI removing roles in areas of employment such as graphic design, let’s ensure that we are doing everything possible to support the many sectors where job creation should be ramping up – from hospitality to healthcare. Again, the problem is the sense of a Government doing the opposite. Just this week we’ve seen worrying reports that more than a third of employers are set to cut back on hiring because of the Government’s workers’ rights reforms, coming into effect this year.
In hospitality, a key ‘stepping stone’ job sector - I was once a kitchen porter - pubs, restaurants and high street businesses are seeing their business rates surging. This will sit as a dead cost on their balance sheet, stifling job creation. Hospitality, like social care, has also been acutely hit by the Jobs’ Tax.
AI may make farming more productive and efficient, but we still need people to farm. So, as I’ve repeatedly argued, we should be backing those who manage our land, not hitting them with the Family Farm Tax. All the evidence suggests the threat of this tax is chilling investment in the rural economy
On energy, we are becoming more and more reliant on imported fossil fuels, not least because the Government has turned its back on our own resources in the North Sea. Why are we pretending that it helps with net zero if we import oil instead of producing it ourselves, when the emissions from shipping gas from the middle east are much higher, and this hits thousands of British jobs?
So, we don’t yet know what the full impact of AI on our economy will be, but the warning signs are there. We should seize the positive potential for everything from technology to make us healthier, to managing agriculture - but recognising that the labour market could change profoundly. As such, it leaves me to the only possible conclusion: we have to back business and support growth, so that our economy can weather technological change, and still emerge stronger.
Published in the Suffolk Free Press.
